What a 0.25% Base Rate Cut Means for You
The Bank of England has announced a cut to the base rate, reducing it to 4.00% following its August 2025 review.
If you’re based in Cobham near Gravesend, Meopham or the surrounding areas, and you’re approaching the end of a fixed rate or thinking about remortgaging or even moving home, this decision could open up new opportunities.
A lower rate like this can bring a bit of welcome breathing room — and it might be the right time to explore your options, whether you’re looking to secure a better deal or plan your next move later this year.
Here’s what you need to know...
Why Did the Bank of England Cut the Rate?
Here’s what that means for homeowners, why the change happened, and what it could mean for your mortgage.
Global Trade Pressures: Rising tariffs from the U.S. are expected to shave 0.3% off UK growth over three years. In response, the Bank signalled this cut could help inflation return to target sooner
Domestic Economic Headwinds: Inflation, currently at 3.6%, remains stubbornly above the 2% target. But signs of slowing wage growth and a weaker labour market helped convince a majority of Monetary Policy Committee members to back a cut
Cautious Easing: While some advocated for a larger cut (half a percentage point), the Bank opted for a more gradual approach—its fifth cut in under a year—highlighting the delicate balancing act between supporting growth and keeping inflation in check.
The Bank now expects inflation to peak at around 3.5% in 2025, before creeping back toward 2% by early 2027
What does a 4.00% base rate mean for homeowners in Kent
The decision to reduce the base rate to 4.00% was widely expected and some lenders have already started adjusting their pricing in recent weeks, with some already reducing rates in anticipation of this move.
If you’re on a variable or tracker rate, this cut may start to bring a little relief; it’s a step in the right direction, especially if more cuts follow later in 2025.
If your current deal is ending soon, now’s a great time to secure a new deal. The mortgage market shifts constantly, and acting early gives you the best shot at securing a competitive rate before lenders reprice or pull deals altogether. Waiting too long could mean missing the window.
A Local Perspective — Cobham, Gravesend & Meopham
At Thameside Mortgages, we’ve seen a sharp rise in homeowners across Kent looking to secure peace of mind with a new mortgage deal.
- Where family homes often come with higher borrowing needs, locking in a deal now could mean significant savings in the long run.
- Where clients are remortgaging or upsizing, we’re help compare not just the rate, but the total cost of borrowing — factoring in cashback, product fees and flexibility
Frequently Asked Questions (FAQs)
The Bank of England reduced rates to support the economy as inflation continues to fall closer to its 2% target.
If your fixed-rate deal is ending within the next 6 months, it’s worth exploring your options now. A broker can help you secure a new rate and monitor the market for better deals.
If you don’t arrange a new mortgage, you’ll likely move onto your lender’s Standard Variable Rate (SVR), which is usually much higher than fixed-rate deals and could increase your monthly repayments significantly.
A good broker searches over 70 lenders, not just your current lender’s offerings. They can help you secure a competitive deal and continue to monitor rates for potential improvements before your new deal starts. Thameside Mortgages are a Cobham-based mortgage adviser in Kent.
Forecasting interest rates is difficult, but many experts predict that the BoE may consider further cuts later in 2025 if inflation stabilises. However, market conditions and global events can impact this outlook.
In short — not necessarily. The mortgage market tends to price in expectations before the Bank of England acts. This means that many lenders may reduce rates slightly in advance, but others may become more cautious and limit product availability.
Often, doing nothing means reverting to a higher standard variable rate — which means interest rates would need to fall significantly before you’d see any real savings during that time.
By reviewing your options now, you can secure a deal that protects you against uncertainty — and in some cases, switch to a better deal if rates drop before completion.
Don’t just take our word for it…Here’s what one of our recent first-time buyer clients had to say:
⭐️⭐️⭐️⭐️⭐️
“Moving house can be daunting for anyone, especially being first-time buyers… Thankfully, we came across Thameside Mortgages, which gave us so much reassurance, clarity and helped simplify everything throughout our entire mortgage process. Nothing was too much to ask and as a team, they have far exceeded any expectation by going above and beyond for us and always being just a phone call away.
We couldn’t have done it without Andrew, Laura and Lydia. You are the most helpful and supportive business with the highest standard of client care. We can’t thank you enough. When we end up moving in the future, Thameside Mortgages will be the first people we turn to. We highly recommend them to anyone that’s thinking of moving. You are in the safest hands choosing this business.”
– Shannon & Alfie
Get in Touch
If you’re in Cobham, Meopham, Gravesend, Rochester, or surrounding areas, now is the perfect time to review your mortgage.
At Thameside Mortgages, we specialise in helping homeowners like you secure the right mortgage deal. Whether you’re remortgaging, buying, or just exploring your options, our team is here to guide you every step of the way.
📞 Get in touch today for a free mortgage review – because securing the right deal now could save you thousands in the long run.
👉 Call us or book an appointment online now!
You can call us on 03455 120 125, or complete the form below.
Post from Thameside Mortgages
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. The Financial Conduct Authority does not regulate most forms of buy to let mortgage.
